We firmly believe in the merits of holding a larger and more diversified group of turnaround stocks: This helps reduce the risk from an individual bad selection and the temptation to sell a temporarily weak stock at the bottom. Also, we like all the stocks on our Recommended list, otherwise they wouldn’t be there. There’s another reason (although perhaps not a very scientific one): Just as a team featured on the cover of Sports Illustrated is said to become jinxed, we sometimes worry that the same fate might befall some of our Top Five picks too.

This turnaround investing opportunity is a quality company, with typically the #1 or #2 position in its markets--and it is backed by a reasonably solid balance sheet. Valuation is attractive at 13.6x next year’s earnings and 9x 2017 EBITDA.

The aerospace component industry has undergone considerable changes in the past few years. We are optimistic about overall industry demand, which should provide a tailwind to companies that need to step up their game.

A lot has happened in the world since July 2011. In addition to recent events like Brexit, we’ve seen oil prices cut in half (twice), China’s growth go from boom to stall, the Taper Tantrum response to fears of the Fed reducing its quantitative easing program and S&P’s downgrade of U.S. debt. We’ve also seen the S&P 500 Index rise by over 55%. Nearly every non-energy company has participated, with some notable stocks increasing by much more...

Learn George Putnam's Turnaround Secrets

Turnaround Investing Blog

With nearly $180 billion in assets under management, “activist” investment funds have become a powerful force in the capital markets: Nearly 40% of companies in the S&P 500 attracted activist attention in recent years. According to Activist Insight, 320 companies in the U.S. experienced an activist campaign in just the first half of 2017; but who, exactly, are these activists, what are they after, and what role do they collectively serve?
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Market-Beating Profit: The 200+ Club

Turnaround stocks present a unique opportunity for savvy investors to buy in at bargain prices. Take a look at this list of just a few of our purchase recommendations that have realized a return rate of 200% or better:

* Bristow remains in our active portfolio (currently as a Hold), and 1,390% gain is as of 7/19/17.

Five Struggling Stocks That Will Turn Around

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Kiplinger points out that despite the post-election stock market surge, not all stocks have benefited from the uptick: "More than 100 issues in the S&P 500 have fallen in price this year, including dozens that have slumped by more than 10%....Yet these stocks won’t all stay in the dumps forever. Some will mount a comeback in 2017, making it an opportune time to try to identify the best candidates."

Quoting George Putnam, Kiplinger details five value opportunities for the new year.